Alok Jha Joins Transcend’s North America Sales Team

September 17, 2025, Greater New York, New York: Transcend, a leading provider of liquidity, funding, and collateral optimization solutions, welcomes Alok Jha to the sales team. Based in Toronto, Alok will focus on expanding Transcend’s North American client base.

“Transcend has seen tremendous growth over the past couple of years across a wide array of financial institutions,” said BJ Marcoullier, Global Head of Sales & Business Development at Transcend. “We are excited for Alok to join us to further accelerate client adoption and deliver our industry-leading platform to collateralized businesses in the insurance and asset management space.”

Alok Jha brings over 20 years of experience in software sales, capital markets technology, and client partnerships, having held roles at Oracle, IBM, Dow Jones, Kyriba, and most recently Numerix, where he worked closely with banks and insurers on derivatives software. With a strong background spanning both fintech and financial services, he has built a proven track record in business development, technology strategy, and fostering long-term client relationships. Passionate about delivering value by bridging business needs with new, leading-edge technology, Alok will play a key role helping new clients improve their financial performance, reduce risk and scale operationally.

“I’ve been following Transcend’s successes over the past couple of years and they truly define what it means to be an industry-leader within the collateral management and optimization space.” explained Alok.

Over the past year, Transcend has increased its global presence to better serve their growing client base amongst G-SIBs, regional banks, brokers, asset managers and insurers. Alok will play a significant role in developing opportunities, driving Transcend’s sales and business development efforts across North America.

ABOUT TRANSCEND

Transcend is a financial technology company with a mission to improve efficiencies in capital markets through advanced technology. Our unparalleled and innovative modular technology helps clients achieve next-level performance through collateral, funding, liquidity & capital optimization solutions. With seamless connectivity to the world’s leading triparty agents, central counterparties (CCPs), custodians, and nostros, Transcend is the partner of choice for inventory analytics, optimization, and automation within a business line or across an enterprise.

Transcend has a growing roster of top-tier financial institutions including GSIB banks, broker-dealers, asset managers, and insurance companies. Visit transcendstreet.com to learn more about how Transcend addresses an array of complex financial, operational, and regulatory concerns.

Collateral Optimization Advances with “Pseudo” Interoperability

Enterprise optimization is a reality not a dream, as large firms grapple with many billions in collateral assets navigating across multiple triparty agents, bilateral activity and through numerous CCPs in various jurisdictions. We hear from Bimal Kadikar, CEO at Transcend, about what that looks like right now for firms going through the necessary operational maneuvers and how functional interoperability plays a role while the industry tests cutting edge collateral mobility technologies.

Kadikar separates the current state of enterprise optimization into two distinct yet connected phases, with one characterized by optimizing within firms’ businesses, such as across global equities, and another between, for example equities, fixed income, uncleared and cleared derivatives and other similar businesses.

“Enterprise optimization in the most classic and the purest definition would be about (optimizing) across all of these businesses, and that is a daunting task. That’s a journey not a destination. We know many pursuing it but don’t know of anybody who has reached that just yet,” Kadikar said.

How Interoperability Progresses in Practice

The first phase, which represents the bulk of Transcend clients, requires closer collaboration across front, middle and back offices, a long-standing trend that is now in play and resulting in “double-digit millions” in savings and benefits per year. Further on is cross-business optimization and Transcend has a few clients starting to do this across global fixed income and equities balances, some which are in excess of the $500 billion mark.

While global systemically important banks are at the forefront, Kadikar noted that it’s not just about the asset quality and funding costs, there’s also balance sheet considerations driven by liquidity ratios such as LCR and NSFR that make “reasonably critical banks…very keen to get the optimization in the right places.”

“The ambition of that optimization may vary, but if you have a few billion dollars in collateral, which a large number of players in this space do, they all benefit from optimization,” he said.

Optimization vs. Interoperability

Major challenges were overcome to get to this stage, and Kadikar highlighted connectivity and interoperability in particular. Interoperability has been an industry goal for decades, with numerous initiatives attempting to make it happen with limited success.

“The reasons and the factors that are affecting the speed of that development are complex and they do have many commercial as well as legal, regulatory factors that are not easy to solve,” he said, adding that this is why the team has taken a more pragmatic approach and not waited on the industry to solve the challenges holistically.

Achieving Interoperability Through Technology

Transcend has created technologies to achieve interoperability “in a pseudo manner” by building real-time connectivity with all major triparty agents and CCPs across the world while also tapping into clients’ existing infrastructures, he explained.

In October, Transcend is officially launching a joint collateral optimization service with Euroclear. According to the release: “Available through existing Euroclear connectivity, the new service will easily integrate critical data for smart decision making and settle optimized collateral allocations. By leveraging Transcend’s technology, clients will be able to configure optimization scenarios, include external collateral pools to determine the best collateral use at Euroclear and perform ‘what-if’ analyses on specific constraints.”

Kadikar was keen to note that the cross-venue optimization capabilities are designed for confidentiality, with Transcend’s algorithms operating at an arm’s length from the triparty infrastructure.

“Euroclear doesn’t get to see what balances a client may have at another triparty agent, and that independence is a critical differentiator,” he explained. “We have been very careful about that architecture, as well as a business decision around that independence.”

At the same time, the Transcend team is eyeing developments in blockchain and distributed ledger technologies, such as the Canton Network, and also taking part in a feasibility study for collateral mobility with HQLAX and other market heavyweights. It is slow moving and there is no specific timeline, but the potential remains compelling.

“If we could move freely the assets from one triparty agent to the other triparty agent with low friction and high predictability, and (in) an efficient manner, then that would be very good for the industry and we would connect to that instead of us doing that mobility directly with our client in a hard way,” he said.

Authored by Anna Reitman and originally published on Finadium.com, September 16, 2025.

Ferdinand Peelen Joins Transcend to Expand EMEA Business

September 9, 2025, Greater New York, New York: Transcend, a leading provider of liquidity, funding, and collateral optimization solutions, has appointed Ferdinand Peelen to the EMEA Sales team. Based in London, Ferdinand will focus on expanding Transcend’s global footprint, particularly expanding the Company’s physical presence within the EMEA region.

“Transcend continues so see incredible opportunities in the EMEA region,” said BJ Marcoullier, Global Head of Sales & Business Development at Transcend. “And with Ferdinand and his deep knowledge of our industry and the region we can continue bring our industry-leading platform to new and existing clients.”

Ferdinand Peelen joins Transcend with over two decades of experience helping financial institutions optimize trade processes. His extensive background includes key sales roles at fintech firms, banks, and exchanges such as NASDAQ, J.P. Morgan, DTCC, and Access Fintech.

With a specialization in Derivatives, Investor Services and collateral management, Ferdinand will focus on helping firms across EMEA obtain a harmonized and complete, enterprise-wide view of collateral inventory and obligations.

“This was a great time and opportunity to join Transcend as they continue to innovate within the collateral management and optimization space.” explained Ferdinand.

Over the past year, Transcend has increased its on-the-ground presence in London to better serve their growing client base amongst G-SIBs, regional banks, brokers, asset managers and insurers. Ferdinand will play a significant role in driving Transcend’s sales and business development efforts, within the EMEA region as the Firm looks to add many more European-based clients.

ABOUT TRANSCEND

Transcend is a financial technology company with a mission to improve efficiencies in capital markets through advanced technology. Our unparalleled and innovative modular technology helps clients achieve next-level performance through collateral, funding, liquidity & capital optimization solutions. With seamless connectivity to the world’s leading triparty agents, central counterparties (CCPs), custodians, and nostros, Transcend is the partner of choice for inventory analytics, optimization, and automation within a business line or across an enterprise.

Transcend has a growing roster of top-tier financial institutions including GSIB banks, broker-dealers, asset managers, and insurance companies. Visit transcendstreet.com to learn more about how Transcend addresses an array of complex financial, operational, and regulatory concerns.

Transcend Appoints Sandeep Arora as Chief Operating Officer. Former Citi Executive Appointed to Accelerate Growth and Strategic Execution

July 22, 2025, Greater New York, New York: Transcend, a leading provider of innovative liquidity, funding, and collateral management solutions, has appointed Sandeep Arora as Chief Operating Officer. Arora has over three decades of experience in capital markets, digital platforms, and financial technology, and will play a critical role in scaling Transcend’s business, operational capabilities, and client delivery.

Arora held many executive positions at Citi and was Head of Digital & Chief Investment Officer for Citi’s Institutional businesses from 2020-2024. Prior roles included Global Head of Fintech & Innovation and COO for Citi’s Markets businesses. He was also Chair of Citi’s Investment Committee for Fintech Investments & LP Investments until 2025, representing Citi on the Boards of Tradeweb, Symphony, Nasdaq Private Markets, Versana, LiquidX & QCWare. Arora also led the creation and sales efforts of CitiVelocity.com, which was voted #1 by Institutional Investor.

In his new role, Arora will lead efforts to enhance go-to-market (GTM) strategies and execution across key client segments, driving the global scale of Transcend’s business and operations. He will work closely with the management team to shape and deliver the company’s strategic roadmap. His appointment comes at a critical juncture, as Transcend accelerates its global expansion and advances its product capabilities to meet rising demand for collateral and liquidity optimization across both sell-side and buy-side institutions. The Transcend platform currently enables the daily optimization of more than $2 trillion in collateral, with substantial growth anticipated in the quarters ahead.

“We are thrilled to welcome Sandeep to the Transcend management team,” said Bimal Kadikar, founder and CEO of Transcend. “His deep understanding of the capital markets and Fintech ecosystems, and his proven ability to lead complex global transformations, make him the ideal person to help drive our next phase of growth.”

“I’ve watched the firm’s evolution over the past several years and have been impressed with its innovative technology, pragmatic approach, and impact across leading financial institutions,” said Arora. “Transcend empowers clients to make smarter, faster, and more informed intraday decisions. That’s an ideal platform off which we can amplify our client impact and scale the business in the years to come.”

Arora’s appointment reflects the growing emphasis by financial institutions on achieving integrated collateral, funding & liquidity optimization across asset classes, regions, and business silos, with firms increasingly turning to Transcend for strategic solutions that unify data, automation, and analytics across enterprise workflows.

ABOUT TRANSCEND

Transcend is a financial technology company with a mission to improve efficiencies in capital markets through advanced technology. Our unparalleled and innovative modular technology helps clients achieve next-level performance through collateral, funding, liquidity & capital optimization solutions. With seamless connectivity to the world’s leading triparty agents, central counterparties (CCPs), custodians, and nostros, Transcend is the partner of choice for inventory analytics, optimization, and automation within a business line or across an enterprise.

Transcend has a growing roster of top-tier financial institutions, including GSIB banks, broker-dealers, asset managers, and insurance companies. Visit transcendstreet.com to learn more about how Transcend addresses an array of complex financial, operational, and regulatory concerns.

Enterprise Collateral Optimization: Transcend’s Connected Approach

The Strategic Role of Collateral in Enterprise Optimization

For capital markets businesses, collateral is more than just an operations necessity — it is a core lever of balance sheet efficiency and liquidity management which, if handled effectively, creates a strategic advantage. As regulatory mandates continue to trend tighter and trading strategies evolve, the ability to deploy collateral intelligently across the enterprise is now a critical function.

Many financial institutions, however, continue to rely on outdated technology, manual processes, and business-siloed decision making. These legacy approaches limit collateral visibility and impede mobility, which means increased funding costs, aka lost P&L.

Collateral optimization addresses these challenges by aligning collateral usage with strategic objectives, whether to reduce funding costs, meet regulatory obligations more efficiently, or maximize asset utilization. Yet optimization is only as effective as the connectivity supporting it. Collateral connectivity — the seamless integration of data, systems, entities, and venues — enables real-time insights and action, ensuring the right assets are in the right place at the right time.

Transcend’s connected approach is unique in its ability to provide both collateral optimization and collateral connectivity. Together, the ability to connect to the global matrix of venues and optimize for configurable scenarios within and across them forms the most complete foundation for true enterprise collateral management.

The following case studies demonstrate how two global firms used Transcend to transform their collateral strategy and operations, achieving significant gains in funding efficiency, transparency, and risk control.

Case Study One: Enterprise Optimization Across Equities and Fixed Income Desks

The challenge:

A global bank faced a broad challenge — how to unlock realized collateral savings (net stable funding ratio (NSFR), liquidity coverage ratio (LCR), etc.), but at the enterprise level. This could be accomplished by optimizing collateral across both equities and fixed income desks, each with distinct requirements and previously siloed operations teams and infrastructure.

Key operational pain points included:

  • Complex constraint environment. The firm needed to optimize across multiple dimensions, including asset quality, haircut, LCR, tenor, maturity, operational movements, and even customer or firm-driven attributes.
  • Siloed infrastructure. Without integration between venues or business units, collateral mobility was limited, and optimization opportunities were missed.
  • Manual eligibility checks. Lacking visibility into actual agent-level eligibility, internal teams moved collateral based on assumptions rather than analytics, resulting in poor asset placement success and unnecessary cost.
  • Tagging and allocation limitations. The firm could not accurately tag or allocate assets at the shell level, making it difficult to fully utilize triparty optimization platforms.
  • Record date risks. Assets were sometimes trapped in nonoptimal locations around record dates, reducing their usable liquidity and collateral value.

The solution and benefit

Transcend’s Cross Triparty Optimization solution provided the firm with a centralized and intelligent platform for enterprise-wide collateral decision making and execution:

  • Full visibility across venues. With daily insights into eligibility, positions, trades, and usage across multiple-trip party agents, the firm could position assets optimally early in the day, ensuring maximum availability for end-of-day shell allocations.
  • Defined optimization parameters. The platform allowed the firm to configure optimization rules to suit individual desk or cross-desk priorities — whether minimizing haircut, maximizing asset quality retention, preserving liquidity, reducing buffers, saving on movement costs, or just factoring unique counterparty of client attributes.
  • Systemic execution. Optimization outputs were automatically fed into internal systems and to triparty venues, streamlining execution and improving accuracy.
  • Shell-level precision. The firm gained the ability to dictate exact shell-level preferences, achieving targeted results for both operational efficiency and economic value.
  • A single, connected platform. By consolidating visibility across business lines and venues, Transcend enabled the firm to break down internal silos and achieve holistic optimization — resulting in better funding decisions, reduced operational risk, and meaningful cost savings.

This transformation gave the firm true enterprise-wide control over collateral, unlocking a new level of agility and strategic alignment between business units, saving tens of millions in P&L and countless manhours.

Case Study Two: Optimization for Equities Desks Across the US and UK

The challenge:

Another global bank wanted to optimize collateral across regionally siloed equities finance desks but faced multiple structural and operational hurdles, such as:

  • Manual allocation practices. Collateral selection and substitution were largely manual, due to siloed operations teams creating inefficiencies and limiting flexibility.
  • Lack of automation and mobility. Without automation and cross-region asset mobility, the firm was unable to react dynamically to funding needs and market conditions.
  • Collateral recall challenges. Counterparty re-use of pledged collateral made it difficult to recall and redeploy assets efficiently.
  • Inadequate agreement data. Internal systems lacked digitized eligibility data, making it hard to validate decisions and optimize allocations.
  • No cross-triparty optimization. The firm could not coordinate movements across triparty venues or manage shell-level preferences or effectively differentiate between firm and client priorities.
  • Missing scenario analysis. The team was unable to run hypothetical ‘what-if’ simulations to inform strategic decisions or forecast the impact of proposed asset movements.

Transcend solution and benefit

By implementing Transcend’s optimization platform, the firm was able to automate and elevate its collateral operations across the US and UK:

  • Shell-level automation. Optimal collateral allocation decisions were automated and tailored to shell-level requirements for multiple venues, reflecting asset quality, haircut, and client versus-firm usage constraints.
  • STP booking to triparty agents. Using Transcend’s straight through processing (STP) booking services, the firm automated collateral movements directly into multiple triparty venues, dramatically reducing operational overhead and effectively broadening the pool of available collateral.
  • Enhanced inventory visibility. Real-time insights into collateral inventory and movements enabled proactive decision-making and efficient asset sourcing, as well as facilitating better trading decisions.
  • Hypothetical scenarios. Teams could now model what-if scenarios, such as acquiring new client assets or adjusting the funding mix, helping determine the most cost-effective strategies while preserving high-quality liquid assets.
  • Measurable impact. The optimization efforts revealed an opportunity to increase funding capacity by US$500 million in less-liquid assets, improving overall balance sheet usage.

This marked a transformative shift, with equities finance teams now equipped with both the tools and the data needed to make smarter, faster collateral decisions at a coordinated global level.

The Value of Collateral Connectivity

Collateral connectivity refers to the seamless, real-time orchestration of data, systems, entities, and movements across the entire collateral ecosystem.

These case studies underscore a central truth — collateral optimization is only as powerful as the connectivity that supports it.

That is the strength of Transcend. We unlock the power of a connected ecosystem through off-the-shelf, seamless data and operational integration with all major global triparty agents, internal systems, most major vendor platforms, more than 40 custodians, over 45 central counterparties, SWIFT, Fedwire, CSDs, and other major market infrastructure.

This connectivity has taken us more than a decade to build, but without it, we would not be able to achieve the benefits our clients are looking for. These include:

  • Real-time visibility into detail-rich assets and obligations, along with comprehensive eligibility terms and constraints.
  • Enterprise optimization: Intelligent analytics that enable cross-entity, cross-venue optimization aligned with firm-specific constraints and objectives.
  • Automation at scale: STP capabilities to automate collateral allocations and substitution workflows, reducing operational load and settlement risk.
  • Real-time insights: Dashboards and analytical tools to provide a 360-degree view of inventory, usage, and opportunity.
  • Strategic scenario analysis: What-if modelling to evaluate new funding strategies, asset sourcing decisions, and balance sheet impacts.
  • Accurate tagging of data and booking orchestration: Reducing reconciliation errors and improving allocation precision.
  • Coordinated movements across silos: Breaking down the traditional barriers between desks, regions, and business functions.
  • Proactive response to change with configurable scenario creation, whether driven by markets, regulations, or liquidity events. Without robust connectivity, optimization remains solely a theoretical exercise. With it, optimization becomes a driver of real business value.

Enabling smarter allocation decisions or transforming legacy processes, Transcend equips its clients with the tools, insights, and infrastructure to achieve their strategic goals.

Originally published in the Securities Finance Times, issues 379, June 10, 2025.

Why Automating and Optimizing Collateral and Liquidity Matters in Volatile Markets

As evolving tariff policies in the U.S. have impacted global markets, the pressure on financial institutions to maintain collateral compliance and operational resiliency intensifies. Rapid market movements can cause sudden spikes in margin calls, counterparty exposure, and regulatory scrutiny. To navigate these challenges effectively, firms must ensure that their collateral processes are not only accurate and efficient but also resilient — capable of responding in real time to shifting conditions. This is where automation becomes mandatory.

How Automation Enhances Liquidity and Collateral Optimization

Collateral compliance refers to the ability of an institution to meet regulatory, contractual, and operational requirements for collateral usage and reporting. In fast-moving markets, manual processes can lead to delays and errors while increasing the risk of non-compliance and financial penalties. Automation minimizes these risks by streamlining processes such as collateral eligibility checks, margin management, settlement, and reporting. It ensures consistency, accuracy, and transparency — key components for meeting internal governance and regulatory standards.

During these dramatic market conditions, optimizing collateral becomes essential for financial institutions to maintain liquidity, reduce costs, and manage risk effectively. Volatile markets often lead to sharp changes in asset values and increased margin calls, placing significant pressure on a firm’s collateral resources. Without a strategic approach for liquidity management, institutions can scramble to meet obligations, potentially using more expensive or illiquid assets than necessary.

Operational resiliency, on the other hand, is about maintaining business continuity and performance despite stress or disruption. Volatile markets test the limits of legacy systems and fragmented infrastructures. Automation enhances resiliency by enabling faster decision-making, reducing reliance on manual interventions, and allowing institutions to respond instantly to market triggers. Automated workflows help institutions quickly allocate optimal collateral, manage substitutions, and avoid settlement failures, even during high-volume periods. Moreover, it can better align the deployment of collateral to maximize value and deliver realized savings during dramatically shifting markets.

Furthermore, automated collateral optimization and booking systems offer real-time visibility into enterprise-wide inventory, allowing for smarter, data-driven decisions. They can detect inefficiencies, suggest optimal allocations, and simulate “what-if” scenarios—capabilities that are crucial when market conditions are unpredictable.

Making Collateral Management an Advantage with Automation

Ultimately, automation transforms collateral management from a reactive, manual process into a proactive, strategic function. It empowers institutions to stay compliant, agile, and operationally sound during times of market stress — reducing risk, enhancing efficiency, and preserving confidence in an increasingly complex financial environment.

Transcend’s collateral optimization platform helps its clients perform through all market conditions. To schedule a demo or learn more about Transcend’s collateral optimization or other innovative products for enhancing liquidity, funding, and collateral performance, click here or contact us at sales@transcendstreet.com

Global Systemically Important Bank Selects Transcend for CCP Integration

A Global Systemically Important Financial Institution (G-SIFI) faced the formidable task of monitoring and managing margin exposures and collateral pledges across a global network of CCPs on behalf of their house and client businesses. And if this could be accomplished, how could they optimize their collateral to fuel additional savings opportunities? Transcend’s industry-leading technology enabled the integration of collateral and margin exposures across 50 CCPs, while reinforcing commitments for operational efficiencies and financial optimization.

The Challenge: Harmonizing a Global CCP Network

By utilizing both direct clearing and local brokers, the institution encountered growing operational complexity. The demand for a seamless, integrated solution to unify and optimize CCP-related activities became essential. The primary challenges included:

Complexity: Navigate CCP operational challenges as each CCP works as a silo with unique connectivity and data sharing access, requiring time and internal resources to aggregate various data flows. Moreover, this needed to be done across 50 CCPs globally.

Margin Requirements: Develop efficient tracking and management of margin calls across multiple CCPs without relying on internal resources to develop and maintain multiple integrations.

Funding Efficiency: The ability to source financial savings by optimizing collateral postings across your CCP exposures.

Liquidity Monitoring: The need to use CCP data to ensure adequate funding is consistently maintained across numerous Nostro bank accounts to satisfy calls throughout the day.

Operational and Reporting Integration: Deliver efficiencies by enhancing transparency and automation for internal teams responsible for reporting and reconciliation.

Develop Efficiencies: Centralize eligibility, positions, and margin obligation data in a centralized platform. Automate the allocation of optimal collateral postings for cleared margin requirements through powerful analytics, optimization, and STP.

The Solution: Transcend’s End-to-End CCP Integration

Following a comprehensive evaluation, Transcend was selected as the only end-to-end solution capable of harmonizing CCP activity while also delivering real financial results. Transcend’s platform provided a fully integrated approach by combining its CCP Central, Eligibility, Optimization, and Intraday Nostro monitoring solutions. This selection was driven by several key capabilities:

Seamless CCP Integration: Transcend’s CCP Central solution provides a unified view of margin requirements and collateral positions across 50 CCPs, ensuring a more efficient and transparent clearing process.

Collateral Optimization: The Optimization module enables real-time decision-making, ensuring that the most cost-effective collateral is posted, thereby reducing excess liquidity drain and optimizing financial resources.

Eligibility and Allocation Automation: Transcend’s Eligibility engine streamlines collateral selection and allocation, ensuring compliance with CCP requirements while maximizing efficiency.

Intraday Nostro Monitoring: By linking cash postings to nostro activity, Transcend provides real-time visibility into cash movements, enabling proactive liquidity management and reducing funding costs.

As financial institutions continue to navigate the complexities of global clearing, Transcend’s comprehensive suite of solutions positions itself as the premier choice for optimizing CCP operations. This partnership underscores the critical role of technology in driving financial efficiencies and operational resilience in an increasingly interconnected global market.

To learn more about Transcend’s CCP Central or to request a demo, click here.

 

Paul Wilson Joins Transcend to Expand EMEA Business

March 5, 2025, Greater New York Area: Transcend, a leading provider of liquidity, funding, and collateral optimisation solutions, has appointed Paul Wilson as Director of EMEA Sales. In this role, Paul will focus on expanding Transcend’s global footprint, particularly expanding the Company’s physical presence in Europe and penetrating the Middle Eastern, African and Asian markets.

“Transcend has seen incredible growth over the recent years and is focused on accelerating this momentum in the EMEA region,” said BJ Marcoullier, Global Head of Sales & Business Development at Transcend. “Adding high-caliber, industry-savvy professionals like Paul will help us build on this momentum and deliver our industry-leading capabilities to new and existing clients.”

Mr. Wilson brings more than 20 years of sales, pre-sales and product expertise to Transcend. Most recently, he served as sales director, EMEA for Broadridge, focusing on Securities Finance, Collateral Management products.  Prior to joining Broadridge, Paul held positions at  ION, Sharegain, and 4Sight Financial Software. “As we accelerate our impact in Europe and make inroads into Asia, I look forward to being a part of Transcend’s continued evolution as a critical enterprise solution for collateralised businesses,” explained Wilson. “I’ve lost count of the number of times I’ve been asked for a solution for optimization over the last 2 decades. Clearly, Transcend is leading the way in this space, and I am excited to join the global sales team and play my part in driving growth and client engagement.

“Transcend is leading the industry in providing innovative optimisation solutions across triparty agents, CCPs and internal activities and our clients are realizing millions of dollars in real savings. Paul’s extensive experience in the securities finance industry and the EMEA region will be a great asset for Transcend as we increase our ambitions in the region,” said Bimal Kadikar, Founder and CEO of Transcend.

Over the past year, Transcend has increased its on-the-ground presence in London to better serve their growing client base amongst G-SIBs, regional banks, brokers, asset managers and insurers. Paul will play a pivotal role in driving Transcend’s sales and business development efforts, within the EMEA region as the Firm looks to add many more European-based clients.

ABOUT TRANSCEND

Transcend is a financial technology company with a mission to improve efficiencies in capital markets through advanced technology. Our unparalleled and innovative modular technology helps clients achieve next-level performance through collateral, funding, liquidity & capital optimization solutions. With seamless connectivity to the world’s leading triparty agents, central counterparties (CCPs), custodians, and nostros, Transcend is the partner of choice for inventory analytics, optimization, and automation within a business line or across an enterprise.

Transcend has a growing roster of top-tier financial institutions including GSIB banks, broker-dealers, asset managers, and insurance companies. Visit transcendstreet.com to learn more about how Transcend addresses an array of complex financial, operational, and regulatory concerns.

Collateral Optimization

What is Collateral Optimization?

Collateral optimization in capital markets refers to the strategic and efficient use of collateral to minimize costs, maximize liquidity, and meet regulatory and risk management requirements. It involves selecting, allocating, and managing collateral in a way that maximizes the best use of available resources while minimizing the financial impact on the organization.

In today’s capital markets ecosystems, efficient collateral management is essential for sustaining market stability, especially with tightening regulatory demands and increasing global trade volumes.

Key Components of Collateral Optimization

Collateral Allocation: Allocating the most cost-effective assets as collateral, ensuring that high-quality, low-cost assets are used for transactions that demand them, while reserving more expensive or scarce assets for critical needs.

Eligibility Criteria: Ensuring that the collateral meets specific requirements set by counterparties or regulatory bodies, such as asset type, credit rating, and liquidity standards.

Cost Management: Reducing the cost of holding and posting collateral by optimizing the allocation of assets across multiple obligations, and by minimizing the need to post higher-margin or higher-value assets.

Liquidity Optimization: Balancing the use of collateral assets in a way that maintains liquidity, ensuring that collateralized assets can still be converted to cash or other liquid assets when needed. Intraday liquidity is an important aspect of liquidity optimization. It ensures that capital market participants can access enough daily liquidity to carry out activities like buying and selling securities, settling trades, or covering short-term financing needs.

Substitution Strategies: Efficiently managing the substitution of collateral by identifying lower-cost alternatives that meet transaction requirements without compromising on quality or eligibility.

Collateral Reuse: Leveraging rehypothecation or reusing collateral across multiple trades where allowed, to enhance the efficiency of collateral use and reduce the overall need for collateral assets.

Regulatory Compliance: Ensuring adherence to regulatory standards, such as those set by Basel III, EMIR, and Dodd-Frank, which impose collateral requirements and impact how assets are optimized for margin and capital management.

Importance of Collateral Optimization in Capital Markets:

  • Cost Efficiency: By optimizing the selection and allocation of collateral, firms can lower the cost of holding and posting assets, freeing up high-quality collateral for more critical uses.
  • Liquidity Preservation: Optimizing collateral ensures that firms maintain sufficient liquidity while meeting collateral obligations, which is especially crucial during periods of market stress.
  • Regulatory Adherence: Proper collateral optimization ensures compliance with regulatory requirements for margin and capital, reducing the risk of penalties and maintaining operational soundness.
  • Risk Management: By strategically managing collateral, firms can better mitigate counterparty risk and ensure that the collateral posted is suitable for the risk profile of the transaction.
  • Operational Efficiency: Automating and optimizing collateral processes improves operational efficiency, reducing the time and effort required to manage collateral allocations and adjustments.

In an increasingly complex financial landscape, collateral optimization is a strategic deliverable for organizations to improve operational efficiency, maximize costs saving opportunities, and ensuring regulatory compliance, all while maintaining the liquidity needed to support business operations and manage risk.

Ready to Reach The Next Level Of Performance Results With Smarter Collateral Optimization?

Collateral Eligibility

What is Collateral Eligibility?

Collateral eligibility in capital markets refers to the criteria that determine whether an asset can be accepted as collateral in financial transactions such as derivatives trading, securities lending, and repurchase agreements (repos). These criteria are defined by counterparties, clearinghouses, or regulatory authorities to ensure that the collateral meets the necessary standards for credit quality, liquidity, and legal enforceability.

Key Components of Collateral Eligibility

Asset Type: Eligible collateral typically includes highly liquid and creditworthy assets such as government bonds, cash, and certain types of securities. Each transaction may have specific requirements regarding the type of assets that can be posted.

Credit Quality: Collateral must meet specific credit rating thresholds to be considered eligible. Higher-rated assets are generally preferred, as they are less likely to lose value during market fluctuations or credit events.

Liquidity: The asset’s ability to be quickly and easily converted into cash is a critical factor. Eligible collateral must be liquid enough to be sold or used without significant delay or loss in value.

Jurisdictional and Legal Requirements: The collateral must be enforceable under relevant legal frameworks. This includes ensuring that the asset can be legally transferred and seized in the event of default and that it complies with the laws of the jurisdiction where the transaction occurs.

Concentration Limits: There are often limits on how much of a certain type of collateral can be accepted, preventing over-concentration in a single asset type or issuer to avoid excessive exposure to specific risks.

Haircuts: Even eligible collateral is often subject to a “haircut,” which is a percentage reduction in its value to account for potential volatility or liquidity risks. The size of the haircut depends on the asset type, market conditions, and credit quality.

Regulatory Compliance: Eligible collateral must also meet the standards set by financial regulations, such as those outlined in Basel III, EMIR, and Dodd-Frank. These rules impose specific requirements on the types and amounts of collateral that must be posted in various transactions.

Importance of Collateral Eligibility in Capital Markets Ecosystems:

  • Risk Mitigation: Ensuring that only high-quality and liquid assets are used as collateral reduces counterparty risk by providing security that can be easily liquidated if needed.
  • Liquidity Management: Maintaining a pool of eligible collateral helps firms meet margin and funding requirements without straining their liquidity positions.
  • Regulatory Compliance: Using eligible collateral is essential to meet regulatory requirements, helping firms avoid penalties and ensure compliance with margin and capital rules.
  • Operational Efficiency: Clearly defined eligibility criteria streamline collateral management by reducing the need for frequent reassessment of assets, leading to smoother settlement and risk management processes.
  • Credit Protection: By restricting collateral to high-quality, liquid assets, firms protect themselves from potential losses in the event of a counterparty default, ensuring the collateral holds its value over time.

Challenges in Managing Collateral Eligibility:

  • Market Volatility: Rapid changes in market conditions can cause previously eligible assets to lose value or liquidity, affecting their suitability as collateral.
  • Dynamic Requirements: Regulatory changes or shifting risk appetites may result in evolving eligibility criteria, requiring firms to stay agile in managing their collateral pools.
  • Cross-Jurisdictional Complexities: Firms that operate across multiple jurisdictions may face challenges in meeting varying legal and regulatory standards for collateral eligibility.

Managing collateral eligibility is essential for safeguarding transactions, ensuring regulatory compliance, and maintaining operational and financial stability.

Ready to More Seamlessly Analyze and Mobilize Collateral?

Collateral Management

What is Collateral Management?

Collateral management is an intricate part of the capital markets and involves the administration and oversight of financial assets, such as securities, that are pledged to mitigate counterparty risk in transactions like derivatives trading, securities lending, and repurchase agreements (repos).

As one of the participants in the capital markets, creditors often require collateral — such as securities, cash, or other assets — that meet specific eligibility criteria to mitigate the credit risk associated with transactions like commercial loans or mortgages. In the event of borrower default, the creditor can seize the pledged collateral to recover the owed amount. Collateral management refers to the process through which counterparties, such as the creditor and borrower, exchange and oversee these assets.

How does Collateral Management Work?

“Collateral eligibility” determines whether a particular asset qualifies to be pledged as security for a loan. An eligible asset must meet the lender’s requirements based on factors such as asset type, the issuer’s creditworthiness, and market value. Only assets deemed acceptable can be used as collateral, ensuring they can be liquidated to recover losses in case of default.

The concept of collateral is straightforward: counterparties — including banks, insurance companies, broker-dealers, pension funds, hedge funds, large corporations, or asset managers — use eligible collateral to secure credit exposure. Cash and government bonds are often favored due to their high liquidity and reliability, making them a common choice in collateral arrangements.

In securities lending, a fund temporarily loans out securities it owns to an approved borrower in exchange for a fee. To mitigate the risk of non-return, the borrower must provide sufficient collateral — either in cash or other securities — designed to protect the fund if the loaned securities are not returned within the agreed timeframe. However, this arrangement is not without risks, including counterparty and liquidity risks. Similarly, repurchase agreements (repos) represent another form of collateralized lending, where a basket of securities serves as the underlying collateral for the loan. Legal ownership of these securities transfers from the seller to the buyer during the contract and reverts to the original owner upon completion.

The Evolution of Collateral Management

Collateral management, while not a new concept, was traditionally seen as a back-office and middle-office function. However, the global financial crisis of 2008 shifted this perception. Financial institutions recognized the critical role of collateral in ensuring access to essential liquidity and funding, especially during periods of market volatility. This realization, coupled with the implementation of new regulatory measures aimed at strengthening the financial system’s resilience, brought collateral management to the forefront as a vital front-office priority.

Who Uses Collateral Management?

Collateral management is essential for businesses across financial and credit markets to mitigate risks and optimize resources. Key industries include banks, insurance companies, broker-dealers, and asset managers, which use collateral in loans, securities financing, and derivatives trading. Hedge funds, pension funds, and corporations rely on collateral for leverage, risk management, and asset-backed financing. independent clearinghouses and central counterparties (CCPs) require collateral for margin requirements, while energy traders and private equity firms use it in trading and project financing. Additionally, corporate treasuries and regulatory entities manage collateral to meet liquidity needs and ensure compliance with financial regulations.

 

Key Elements of Collateral Management:

Collateral Selection: Choosing suitable assets—such as cash, government bonds, or equities—that can be used as collateral, based on their credit quality and liquidity.

Valuation: Ongoing assessment of the collateral’s market value to ensure it maintains adequate coverage. Regular mark-to-market valuation is critical, as asset values fluctuate over time.

Margin Calls: If the value of the collateral falls below a predetermined level (often referred to as a “haircut” or margin), the collateral receiver may issue a margin call. The counterparty is then required to provide additional collateral to cover the shortfall.

Substitution: In certain situations, one type of collateral may be replaced with another, pending mutual agreement. The new collateral must meet the acceptable standards of both parties in terms of value and quality.

Eligibility Criteria: Defines the standards that determine which assets can be accepted as collateral, based on factors such as asset type, creditworthiness of the issuer, market value, liquidity, and regulatory requirements, ensuring the collateral meets the lender’s risk management and operational needs.

Collateral Rehypothecation: This refers to the reuse of received collateral in other transactions. Rehypothecation is common in repos and securities lending, but it is subject to regulatory and contractual limitations.

Settlement and Reconciliation: Ensuring that collateral is transferred to the correct accounts and that both parties maintain consistent records of transactions, helping to avoid discrepancies or errors.

Importance of Collateral Management in Capital Markets:

  • Risk Reduction: It lowers counterparty risk by providing security that can be liquidated in case of a default.
  • Liquidity Provision: Collateral acts as a source of liquidity, particularly during financial stress.
  • Regulatory Compliance: Enhanced regulations post-2008, such as Basel III, EMIR, and Dodd-Frank, emphasize efficient collateral management to meet margin and capital requirements.
  • Operational Efficiency: Automating collateral management processes helps reduce operational risks, errors, and settlement delays.

Ready to Streamline Your Collateral Management?

Transcend Expands its Platform Offerings to Nomura, a Key Client

January 30, 2025, Greater New York Area: Transcend is partnering with Nomura, one of the world’s leading financial services firms, to implement Cash and Collateral Management modules that are built on Transcend’s pioneering technology. By harmonizing key operational systems and data in one platform, Nomura aims to position itself to better manage and optimize its collateral, funding, and liquidity across its Global Markets business.

Transcend and Nomura first partnered in 2019 to improve collateral operations and eligibility validation processes for bilateral derivatives. The partnership has since expanded to include optimized collateral allocations with multiple triparty agents. The Transcend platform enables users to make collateral allocation decisions using a variety of factors including haircut, asset quality, and funding maturity, among others. Following these successful engagements, Nomura made a strategic investment in Transcend in 2023.

The relationship is now further expanding to include inventory management, sources & uses, and intraday liquidity monitoring capabilities.

“We are delighted to expand our relationship with Nomura,” said Bimal Kadikar, CEO and Founder of Transcend. “With the implementation of an array of new services across business areas, we are realizing the vision of a single, unified platform for optimizing collateral, funding & liquidity across the firm.”

“Optimizing collateral and financial resources is a competitive advantage in today’s global financial economy,” said Anthony Kowalski, Chief Operating Officer of Global Rates at Nomura. “With Transcend, we have delivered value along each step of the way and are really excited about where we are headed.”

Transcend has experienced significant client growth over the last several years. Leveraging its industry-leading collateral optimization platform, businesses from asset managers to insurers to regional banks to sell-side broker-dealers are benefiting from financial resource savings, better risk management, and operational efficiency. Transcend looks forward to continued expansion of its product and company footprint in the years to come.

About Transcend

Transcend is a financial technology company with a mission to improve efficiencies in capital markets through advanced technology. Our unparalleled and innovative modular technology helps clients achieve next-level performance through collateral, funding, liquidity & capital optimization solutions. With seamless connectivity to the world’s leading triparty agents, central counterparties (CCPs), custodians, and nostros, Transcend is the partner of choice for inventory analytics, optimization, and automation within a business line or across an enterprise.

Transcend has a growing roster of top-tier financial institutions including GSIB banks, broker-dealers, asset managers, and insurance companies. Visit transcendstreet.com to learn more about how Transcend addresses an array of complex financial, operational, and regulatory concerns.

About Nomura

Nomura is a global financial services group with an integrated network spanning approximately 30 countries and regions. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Wealth Management, Investment Management, and Wholesale (Global Markets and Investment Banking). Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership. For further information about Nomura, visit www.nomura.com.